‘A firm can be making a loss but liable for VAT. Is it any wonder that shops are closing?,’ says Margaret Morris.
Photograph: Matt Cardy/Getty

One way to help stem the loss of small businesses from our high streets (Retail property values to dive and more high-street jobs to go, experts say, 21 January) would be to raise the level at which businesses have to register to pay VAT from £85,000 to £250,000 and reduce the rate, currently 20%, which adds to the cost of living for all working people as well as making it near impossible for small businesses to make even a small profit.

In order to pay minimum-wage salaries to two or three employees, plus the employer’s national insurance contribution, plus rent and business rates, requires even a very small high street business to achieve a turnover which takes it into the range where VAT must be paid. VAT is not paid on profits but on total turnover, so a firm can be making a loss but be liable for VAT. Is it any wonder that shops are closing?

Corporation tax is paid on profits, VAT on turnover. It is surely unjust and regressive for government policy over the years to have concentrated on reducing corporation tax to a low level but raising VAT to a fifth of all sales in shops. It is true that where the cost of their purchases have included the suppliers’ VAT costs, they can be claimed back but this is no net advantage – on the contrary, they are acting as the government’s tax collectors. Reducing the rate of VAT would be a simple, quick way of helping small firms and reducing the cost of living at the same time.Margaret MorrisLondon

• Could the demise of town centres and the revitalisation of lifelong learning (A century of adult education has been tossed aside, 15 January) not be jointly tackled by creating lifelong learning centres where people could learn cookery, languages, IT skills, adult literacy, photography, flower arranging – whatever they fancied? They might go for a meal or a drink beforehand or afterwards. People might need to buy craft supplies or ingredients, to borrow books from the library.

It would need some joined-up thinking, such as buses that run all evening or free parking. Who knows, people might even want to live in the town centre. At the very least, this might give people a reason to go there.Alison HayesYork